Manila may issue samurai bonds in Q4 for 2010 needs

Published: 15 Sep 2009 20:53:32 PST

MANILA, Sept 16 - The Philippines is likely to issue Samurai bonds in the fourth quarter after the Japan Bank for International Cooperation (JBIC) agreed to lower the guarantee fee on the bonds, the national treasurer said on Wednesday.

Roberto Tan told Reuters the government received feedback that appetite in the Samurai bond market was only for a $500 million issue. The debt sale would be used to pre-fund the government's 2010 borrowing requirements, he said.

"We will consider a Samurai bond issue," Roberto Tan told Reuters, when asked about a possible fourth quarter sale of the debt denominated in Japanese yen. "That's the plan."

"We got better terms," he said. The government has been negotiating with JBIC for several months to reduce its guarantee fee on the Samurai bonds.